On EITC Awareness Day, H&R Block Alerts Taxpayers to Common Errors
Earned Income Tax Credit goes unclaimed by 20 percent of eligible consumers and improperly paid by IRS 20 percent of the time
Almost 28 million consumers claimed more than $66 billion in Earned Income Tax Credit (EITC) last tax season, or an average of $2,407. Yet 1 in 5 eligible taxpayers do not claim the EITC, which means many taxpayers are not getting the maximum refund possible.
At the same time, because of factors including rule complexity and fraud, the EITC improper payment rate has remained above 20 percent for more than a decade. Lack of awareness about EITC rules especially costs taxpayers who make unintentional errors on their returns, which could cause these taxpayers to have to respond to IRS inquiries and lead to delayed or reduced refunds.
For EITC Awareness Day, H&R Block is releasing The Earned Income Tax Credit: Illustrations of Complexity, a white paper from The Tax Institute at H&R Block that alerts taxpayers to common errors.
Education tax benefits for students and their parents can save both money
Adoptive families may also take advantage of the federal adoption tax credit which is worth up to $13,570 (for 2017) for each child they adopt.
20 percent of eligible taxpayers do not claim the Earned Income Tax Credit due to the misunderstanding of the requirements which can be proven costly.
The earned income tax credit is one of the nation’s largest anti-poverty programs and an important piece of annual income for millions of Americans.